A few days ago the cryptocurrency industry sentiment seemed bullish with some crypto experts making wildly bullish predictions for both the short and long-term prospects of Bitcoin and the cryptocurrency industry. Now, not so much.
Over the past week, we saw crypto’s heavy hitters including Binance CEO Changpeng Zhao, cybersecurity expert, and businessman and now-turned crypto proponent John McAfee and Galaxy Digital CEO Mike Novogratz among others making extremely bullish statements on the future of the cryptocurrency industry. And all for good measure as all the signs, at least from a technical analysis perspective, were there. Bitcoin had been trending sideways for weeks and its price volatility was the lowest it had been in a long time. It seemed like it was in consolidation.
However, come Wednesday and all bullish sentiments were thrown out the window when Bitcoin suddenly fell as much as 15% causing an industry-wide market slump. Other large-cap coins and tokens lost as much as 20+%. And now, the bulls have turned bearish at least in the short-term.
In an interview recently with Bloomberg, Tokyo-based crypto trader working with eWarrant Japan Securities K.K. Soichiro Tsutsumi gave his reservations about the overall crypto market. He said, Bitcoin’s fall below $6,000 had violated its support line and this could be a “dangerous sign” for the short to mid-term prospects of the industry.
Similar bearish sentiments have been expressed by Fundstrat Global Advisors partner Rob Sluymer. Sluymer seems to think that Bitcoin’s price slump below $6,000 has completely thrown other digital assets’ technical indicators “in the dirt.” Giving more explanations he has said previously that “this week’s breakdown produced significant technical damage… That will likely take weeks, if not months, to repair to create a durable enough price ‘structure’ to support a multi-month rally.”
Looking back just a few weeks, Sluymer is on record making some positive statements on the cryptocurrency industry. At the time he said that all the technical signals showed a “silver lining” in the cryptocurrency cloud backed by the low volume and low volatility. He said that the future prospects of digital assets were “encouraging.”